Freddie Mac Named RMBS and CMBS Issuer of the Year

Rhea-AI Summary

Freddie Mac has been awarded the titles of Issuer of the Year for both residential (RMBS) and commercial (CMBS) mortgage-backed securities by Global Capital. This recognition highlights Freddie Mac’s innovation in credit risk transfer through its STACR and K-Deal securities. Since launching the CRT program in 2013, Freddie Mac has transferred credit risk on over $2 trillion in single-family mortgages. Additionally, Freddie Mac has issued $515 billion in multifamily securities since 2009, focusing on making housing accessible for low- and moderate-income Americans.

Positive

• Named Issuer of the Year for RMBS and CMBS categories, enhancing reputation.
• Over $2 trillion in credit risk transferred since the CRT program's inception, indicating strong market position.
• Issued $515 billion in multifamily securities since 2009, showcasing substantial operational scale.

Negative

• None.

Global Capital Recognizes Freddie Mac with Prestigious Securitization Awards

MCLEAN, Va., July 15, 2021 (GLOBE NEWSWIRE) -- Freddie Mac today announced that it has been named Issuer of the Year in both the residential (RMBS) and commercial (CMBS) mortgage backed securities categories by Global Capital, the international capital markets news and data service. The RMBS and CMBS awards recognize Freddie Mac’s Single-Family Credit Risk Transfer (CRT) STACR and its Multifamily K-Deal^® securities, respectively.

“The RMBS Issuer of the Year Award acknowledges Freddie Mac’s ongoing commitment to the credit risk transfer asset class,” said Freddie Mac’s Mike Reynolds, Vice President of Single-Family CRT. “Through CRT, Freddie Mac helps ensure a better housing finance system for homebuyers while decreasing risk and providing unique opportunities for investors.”

Freddie Mac pioneered the single-family agency CRT market in 2013 when it first launched its STACR (Structured Agency Credit Risk) notes. In STACR transactions, credit risk exposure on loans that Freddie Mac owns or guarantees is transferred away from U.S. taxpayers through the issuance of unsecured notes whose principal payments to investors are determined by the performance of a reference pool consisting of recently acquired single-family mortgages from a specified period. Freddie Mac has transferred credit risk on more than $2 trillion in single-family mortgages since inception of the CRT program.

“We’re very proud to be named CMBS Issuer of the Year,” said Robert Koontz, Freddie Mac Senior Vice President, Multifamily Capital Markets. “This award recognizes our effort to make home possible for low- and moderate-income Americans while providing industry-leading commercial mortgage-backed securities for investors seeking opportunity in the U.S. housing finance sector.”

Freddie Mac Multifamily is a leading issuer of agency-guaranteed structured multifamily securities with $515 billion overall issued in securities since inception of the agency CMBS model in 2009 through the end of 2020. Freddie Mac’s flagship K-Deals represent $485 billion of the overall issuance of multifamily securities and are part of the company’s business strategy to transfer a portion of the risk of losses away from taxpayers to private investors who purchase the unguaranteed subordinate bonds. K Certificates® typically feature a wide range of investor options with stable cash flows and structured credit enhancement.

About Freddie Mac
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.

MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@FreddieMac.com

FAQ

What awards did Freddie Mac win in 2021?

Freddie Mac won the Issuer of the Year award for both residential (RMBS) and commercial (CMBS) mortgage-backed securities.

How much credit risk has Freddie Mac transferred?

Freddie Mac has transferred credit risk on more than $2 trillion in single-family mortgages since launching its CRT program.

What is Freddie Mac's focus in the housing market?

Freddie Mac aims to make housing accessible for low- and moderate-income Americans through its multifamily securities.

When did Freddie Mac first launch its CRT program?

Freddie Mac launched its CRT program in 2013 with the introduction of STACR notes.

How much has Freddie Mac issued in multifamily securities?

Since 2009, Freddie Mac has issued $515 billion in multifamily securities.